Definition
Cognitive Budget: The total cognitive resources you can or will invest in a decision.
Theoretical basis
From T2 Cognitive Budget Theorem: /en/wiki/theorem-2-cognitive-budget
What counts as “cognitive resources
| Resource | What it means | Typical cost signal |
|---|---|---|
| time | search + comparison time | endless tabs, delayed choice |
| attention | focused thinking capacity | shallow reading, distraction |
| energy | mental effort | fatigue, avoidance |
| emotion | stress load | anxiety, regret loops |
Allocation rule (zh-aligned)
Allocate more budget when:
- decision value is high,
- reversibility is low,
- information asymmetry is high.
References
- Payne, J. W., Bettman, J. R., & Johnson, E. J. (1993). The Adaptive Decision Maker. Cambridge University Press.[source]
- Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69(1), 99–18.[source]